1

History, Capacity and Innovation

Hirotomo MaekawaHirotomo Maekawa

ITA ConferenceITA ConferenceOctober 5, 2011October 5, 2011

San Diego, CaliforniaSan Diego, California

TOHO TITANIUM CO.,LTD.TOHO TITANIUM CO.,LTD.

2

Information in this material includes not only Information in this material includes not only facts that have occurred, but also estimates facts that have occurred, but also estimates and projections that represent our and projections that represent our assumptions based on available information assumptions based on available information as of the date this material was prepared. as of the date this material was prepared. Hence please note thatHence please note that actual figures and actual figures and results may differ from our estimates and results may differ from our estimates and projections described in this material.projections described in this material.

Disclaimers

3

Toho’s Vision and Aspiration

To raise the status of titanium metal toward a major from a minor by making it more widely used metal.

4

Current Plant Sites and Products

Wakamatsu PlantTitanium Sponge

Yahata PlantTitanium Ingot (EB)

Kurobe PlantCatalyst Hitachi Plant

Titanium Ingot (EB)

HeadquartersHeadquartersChigasaki Plant

Titanium Sponge, Ingot (VAR), Fabricated Products, Catalyst,Ultra Fine Nickel Powder, High

Purity Titanium Dioxide and Others

5

Sales Revenue by product

Titanium Sponge25%

Titanium Ingot40%

Others35%

6

History

1953 Toho Titanium was established1954 Ti Sponge production started in Chigasaki

Titanium Sponge

7

Capacity Expansion since 1954

0

5000

10000

15000

20000

25000

300001954

1957

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

Year

tpy

Titanium SpongeHistory

8Chigasaki Plant: 13,200tpy

Wakamatsu Plant: 12,000tpy

Total : 25,200tpy

Current CapacityTitanium Sponge

Dual Production Sites= Less risk of supply interruption

9

Productivity Improvement

Wakamatsu Chigasaki

104Product Yield102Electricity Consumption188Production per Electrolysis cell 100 (Index)

141Labor

Titanium Sponge

10

1960 Ti Ingot production started1985 World Biggest Ti Ingot at the time

Titanium IngotHistory

15mt

11

1998 EB furnace operation started First in Japan2008 New EB furnace operation started

World Biggest Ingot now

History

9mt

25mt

Titanium Ingot

12

Capacity Expansion since 1960

0

5000

10000

15000

20000

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

2011

Year

tpy

HistoryTitanium Ingot

13

Yahata EB Plant 10,000tpyChigasaki VAR Plant

6,500tpy

Hitachi EB Plant 2,500tpy

Total : 19,000tpy

Current CapacityTitanium Ingot

14

2008 Large Size Scrap Recycle started

Toho is the first melter in Japan who melted large size scraps.

Scrap Recycling

Breakdown Breakdown CropCrop

Hot Rolling CropHot Rolling Crop

Dissolved perfectly in the long hearth of TOHO 4.8MWDissolved perfectly in the long hearth of TOHO 4.8MW--EB furnaceEB furnace

Surface Surface TreatmentTreatment

15

Material Flow in Japan in Y2010 Estimated by Toho

Scrap Recycling

16

Material Flow in Japan in the future Estimated by Toho

Scrap Recycling

17

2009 Overseas Sales Offices were established

Toho Titanium Europe Toho Titanium Europe London, UKLondon, UK

Direct Sales Channel

Better serviceCloser communication

Quicker response

Toho Titanium AmericaToho Titanium AmericaHouston, USAHouston, USA

18

Titanium Sponge

Under construction for expansion Under construction for expansion 3,600tpy3,600tpy

Wakamatsu Plant: 12,000tpy(now)

Toho’s Sponge Capacity (by Apr. 2012)

Total 28,800tpyChigasaki 13,200tpyWakamatsu 15,600tpy

Next Capacity Expansion

19

Yahata EB Plant 10,000tpy(now)

Titanium IngotNext Capacity Expansion

Building 2Building 2ndnd EB furnaceEB furnace10,000tpy10,000tpy

Toho’s Ingot Capacity (by middle of 2013)

Total 29,000tpyChigasaki 6,500tpyHitachi 2,500tpy Yahata 20,000tpy

EB1

EB2

EB1

EB2

20

Direct-Cast Titanium Slab, “DC SlabTM”Innovation

・Jointly developed with Nippon Steel・Produced through EB melting process・Control surface properties and internalstructure

・High dimensional accuracy

21

InnovationDirect-Cast Titanium Slab, “DC SlabTM”

22

Direct-Cast Titanium Slab, “DC SlabTM”・No need for ingot breakdown forging

Innovation

→ Shorten manufacturing time→ Reduce intermediate inventory→ Reduce scrap generation

DC Slab

Ingot Slab

23

1965 Polyolefin Catalyst production started1986 High Efficiency Catalyst production started

Other Products

◇ Reduction technology and TiCl4 are used for Catalyst production.

24

1970 High Purity TiO2 production started1999 Ultra Fine Nickel Powder production started

MLCC

High Purity TiO2

Ultra Fine Nickel Powder

Other Products

25

1971 Ti Fabrication business started

TOHOTEC, an affiliate company

Other Products

26

Why don’t you join us and work together in order to make titanium more widely used metal and raise its status toward a major metal ?

Companies involved in the titanium industry such as feedstock suppliers, sponge producers, master alloy producers, mill product producers, forgers, fabricators, scrap processors, Fe-Ti producers and traders are all welcomed.

Road to a Major Metal

27

Thank you for your attention